Rev Asia’s shares jump by 30%

PETALING JAYA: Rev Asia Bhd, which recently sold its entire business to Media Prima Bhd for RM73.5mil, saw its shares surge by about 30% to close at 95 sen after the company declared a special dividend of 44 sen on Wednesday.

A volume of 42.12 million shares in Rev Asia changed hands yesterday.

On Tuesday, Rev Asia had completed the sale of its 70%-owned Rev Asia Holdings Sdn Bhd to Media Prima Digital Sdn Bhd for a cash consideration of RM73.5mil.

With the disposal of its core business, Rev Asia is now considered as a cash company pursuant to Bursa Malaysia’s Guidance Note 2.

In a circular to shareholders dated July 5, Rev Asia said that it would use RM59mil from its cash proceeds from the sale as a dividend payout, with the remainder to be spent on working capital (RM6.69mil), incentive payment to selective key employees (RM3.5mil), payment of the amount owed by Rev Asia to Youth Asia Sdn Bhd (RM3.31mil) and estimated expenses for the disposal (RM1mil).

Rev Asia said the entitlement date of the special dividend is Aug 16, while the payment date is Aug 28.

Rev Asia Holdings is involved in advertising and internet social media businesses, with brands like SAYS.com, JUICE, OhBulan!, 8share and KLIPS.

The circular to shareholders, however, also said that Bursa Securities may reclassify Rev Asia as a cash company, upon completion of the disposal.

Pursuant to Rule 8.03 and GN2 of the listing requirements, a listed corporation can be classified as a cash company if its assets consist of 70% or more of cash and short-term investments, or a combination of both.

In the event that Rev Asia is classfied as a cash company, Rev Asia will be required to submit an application to regularise its financial conditions or operations and obtain Bursa Securities’ approval to implement the proposal within 12 months from the day that Rev Asia is considered as a cash company.

The circular added that in the event that Rev Asia fails to regularise its condition, there is a risk that trading of Rev Asia shares will be suspended and subsequently de-listed from the Ace market.

The disposal effectively signifies that Rev Asia will dispose of its core business and has no future revenue and profit contributions.

Hence, Rev Asia will continue to be an investment holding company.

The circular added that it is the intention of the board to maintain the listing status of Rev Asia. “The board is in the process of identifying potential businesses and/or assets to acquire,” said Rev Asia.

Furthermore, the digital media group highlighted that along with major shareholder Catcha Group Pte Ltd, both companies are exploring for opportunities related to Internet cities across Asia.